TripActions, the American travel technology company that was founded by Israeli entrepreneurs, has raised an additional $300 million in equity and debt financing from investors in a new series funding round G, which values the firm at more than $9 billion, the company announced Wednesday.
TripActions is considering an IPO but did not give a specific timeline. Bloomberg reported in August that the company had filed documents confidentially with the US Securities and Exchange Commission (SEC) in preparation for a scheduled IPO.
TripActions’ new funding round is a combination of $154 million in equity from new and existing financial investors such as Andreessen Horowitz, and $150 million in structured finance led by the investment firm worldwide Coatue Management.
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The company raised $275 million at a valuation of $7.25 billion last fall. This latest funding round marks the third fundraising for the company in three years.
The company launched TripActions Liquid in 2020 in the United States. It offers a payment system that combines virtual cards with expense management software, allowing employers to closely track travel budgets and employees to pay for work-related expenses.
“No other company offers a single, unified travel and expense management solution for global enterprises,” says Cohen.
Although the company has been seriously affected by the COVID pandemic, with the travel industry severely disrupted, it appears to have rebounded with significant growth.
Cohen told CNBC on Wednesday that business travel is picking up quickly and TripActions is expected to end the year with a five-times growth rate for bookings. via the platform and with a rate seven times higher for expense reports.
“We are growing very rapidly,” he noted, adding that the company had secured “a funding round [un tour de financement où la valorisation d’une société augmente] in a declining market, which speaks volumes about the strength of our business at the moment.”
TripActions said in a statement that the funding will be used to continue the company’s expansion and to grow its acquisitions over the past 18 months, namely travel management companies Reed & Mackay, Comtravo and Resia. The company also plans to launch TripActions Liquid in Europe and open new offices in Portugal, Germany, France and the UK.
Based in Palo Alto, TripActions established a Research and Development arm in Israel in 2021.
As of July, TripActions employed more than 2,500 people in nearly 60 offices around the world, the company said.
Cohen told CNBC that the company’s success came from its modernization of otherwise outdated business travel practices, such as booking through travel agencies.
“No one in this industry is growing at our pace and we are changing the industry,” he explained, noting that given the pace of growth, the $9.2 billion valuation of TripActions was “fair”.
“From the start, TripActions has revolutionized business travel by automating, personalizing and professionalizing this kind of experience,” Ben Horowitz, co-founder and general partner of Andreessen Horowitz, said in a statement. “Despite the pandemic which has blocked business travel, the company has doubled its efforts to innovate and today the bet is paying off in spectacular fashion. »
Dan Rose, president of Coatue Ventures, who is expected to join the TripActions board as an observer, said that “everyone who travels a lot has experienced the hassle of booking flights, last-minute changes and transmission of expense reports. TripActions brings modern software to make it all more transparent. At a time when companies are looking more than ever to control their expenses, TripActions allows companies to save money by aligning the interests of employees with those of the company”.